Electricity Providers in Tasmania

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Tasmania has historically been home to one of the most heavily regulated energy markets in Australia. While this meant retail competition was non-existent until recently, it at least made electricity and gas prices fairly stable and easy to understand. In this article, Canstar Blue introduces you to Tasmania’s energy retailers and distributors, and explains the fundamentals of the Tasmanian energy market.

The difference between retailers, distributors and generators

Before we get underway, it’s worth making a basic point on terminology. The electricity and gas markets can respectively be broken into three tiers – retailers, distributors and generators.

• Generators: Produce the electricity and/or natural gas. Tasmania’s main electricity generator is Hydro Tasmania. Natural gas in Tasmania is imported from a variety of generators on the mainland.
• Distributors: These companies are responsible for delivering the electricity and gas from the generators to your property. Tasmania’s electricity distributor is TasNetworks. There are two gas distributors – Aurora Gas and Tas Gas.
• Retailers: Retailers are responsible for billing and customer services. The main retailers are Aurora Energy – an electricity and natural gas retailer – and Tas Gas, a natural gas retailer. But as we’ll come to, a couple of competitors have now joined the electricity market for the first time.

Can I choose my electricity retailer? You can now!

Aurora Energy was the only electricity retailer servicing homes in Tasmania until February 2019 when 1st Energy was permitted to enter the local market. While the Tasmanian government introduced Full Retail Competition in 2014, allowing for other retailers to enter the market and compete for customers, no one came to the table until Melbourne-based 1st Energy made the move. This was likely because power prices remain regulated. However, the good news for electricity customers in Tasmania is that, with a regulated price cap, the only way is down for any electricity retailer new to the market and looking to get households to switch.

Since the arrival of 1st Energy, several other retailers have also entered the market. In late 2019, Future X Power entered the Tassie market, offering one market offer with a small pay on time discount. As of late 2020, Energy Locals also entered the ring, shaking up the scene with an affordable electricity plan that provides customers with access to wholesale electricity rates for a monthly membership fee. And in 2021, Elysian Energy began offering its latest subscription energy service, while CovaU Energy and Glow Power also joined the Tassie market.

Tasmania Electricity Prices

Tasmania Electricity Rates

Despite retail competition in the state de-regulating, prices in Tasmania still remain regulated by the Government. This means that there is very little room for variation in price for retailers in the state, based on rates alone. As such, most electricity providers in Tasmania will rely on discounts, incentives or unique proposition’s in order to beat our the competition. Recently though, regulated prices in Tasmania saw a drop of $183 that allowed households the chance to save more on their electricity bills.

Aurora Energy Rates

Aurora Energy is a state government-owned corporation and until recently was Tasmania’s only electricity retailer. Aurora’s prices remain fairly reasonable despite the relative lack of discounting and competition. It also offers GreenPower products, under its Aurora Green option, for those who are conscious about their carbon footprint.

The table below shows Aurora Energy’s electricity usage and supply charges for Tasmania, with five different tariffs available. A tariff refers to the electricity pricing structure. Different rates apply to the different tariffs. Below are Aurora’s standard residential electricity prices.

Prices as of May 2022. Visit Aurora Energy for more details.

Customers interested in tariff 93 will require a smart meter. It’s also important to point out that tariffs 61 and 62 are controlled load tariffs and don’t operate as a primary electricity tariff.

1st Energy Rates

The first residential electricity challenger to Aurora Energy, 1st Energy offers very similar prices across its tariff structures. However, keep in mind that even subtle differences can have a big impact over time. Below are the prices for the RACT Saver which comes with a pay on time discount off usage charges.

Prices as of May 2022. Visit 1st Energy for more details.

Future X Power Rates

Future X Power offers slightly higher rates across the board than its competitors. With this retailer, you’ll only be able to sign up to a single rate plan, meaning you’ll pay the same rates no matter the time of day.

Prices as of May 2022. Visit Future X Power for more details.

Energy Locals Rates

Challenger brand Energy Locals appears to have lower rates than the other providers available in the state, however in order to do so, customers will need to pay a monthly membership fee to unlock cheaper wholesale prices. Here’s what’s on offer from this retailer:

Prices as of May 2022. Visit Energy Locals for more details.

Elysian Energy Rates

With Elysian Energy, rates are dealt with a little differently. On the Power Maximiser plan, customers pay a monthly subscription fee instead of a daily usage charge. In addition to covering the daily usage charge, this fee also covers the costs of the first 250kWh of energy usage each month. Any additional usage that exceeds this amount is then charged to customers at what’s claimed to be a ‘low, competitive rate’. Because of this subscription service it can be difficult to determine just what the rates will be for customers each month, so it’s best to check the energy price fact sheets before making a purchase decision.

Solar Power Tasmania

When you factor in the savings that come with solar power generation, it’s often harder to determine which provider comes out as the cheapest bet. As of July 2021, the minimum solar feed-in tariff rate was set to 6.501c/kWh in Tasmania. However, some providers choose to offer more competitive rates than this. Here are the current solar feed-in tariffs on offer from Tasmania’s energy retailers:

• Aurora Energy: 6.501c/kWh
• 1st Energy: 6.501 to 10c/kWh
• CovaU Energy: 6.501c/kWh
• Energy Locals: 6.6c/kWh
• Elysian Energy: Government feed-in tariffs available for eligible customers
• Future X Power: Government feed-in tariffs available for eligible customers
• Glow Power: 7c/kWh

Please check retailer websites for more details. Solar feed-in tariff rates accurate as of March 2022.

How to install solar in Tasmania

Installing solar in Tasmania requires approval from TasNetworks. There are six steps to installing solar in Tasmania:

1. Find an accredited solar installer
2. The Installer submits a connection application with TasNetworks
3. TasNetworks assesses whether solar system meets technical requirements and whether the network can accommodate your solar system.
4. Once approved, the solar installer will begin installation.
5. Before switching the solar system on, TasNetworks will install a digital import-export meter which makes it possible to receive a feed-in tariff.
6. The solar system is switched on and you’re ready to start saving with the power of the sun.

If you want to learn more about solar and how to find a reliable installer, check out our solar buying guide.

Can I choose my natural gas retailer?

There are two natural gas retailers in Tasmania – Tas Gas and Aurora Energy. Both retailers supply gas to the full range of customers, including residential, business and industrial. Tas Gas entered the Tasmania market following the introduction of Full Retail Competition back in 2003 and has come to dominate the state with 8,000 customers, accounting for roughly 65 per cent of the market share. Both gas companies have nearly identical prices and services, so your choice of gas supplier will ultimately come down to the quality of service and personal preference. Although the market is open for new competitors to enter, it seems unlikely Tasmania will see a new gas retailer until the market grows.

Tasmania Gas Prices

The price of natural gas is not regulated in Tasmania, yet there is a negligible difference in price between Tas Gas and Aurora Energy. There are also no published discounts and very little consumer switching. As you can see, Tas Gas usage rates are cheaper, however the retailer’s supply charges are much higher.

Aurora Gas Rates

Prices as of May 2022. Visit Aurora Energy for more details.

Tas Gas Rates

Prices as of May 2022. Visit Tas Gas for more details.

Who is the electricity distributor in Tasmania?

TasNetworks is a state government-owned corporation and Tasmania’s only electricity distributor. As a distributor, TasNetworks is responsible for maintaining the poles and wires across the state. TasNetworks is also in charge of checking and maintaining electricity meters.

What’s next for Tasmania’s energy industry?

Tasmania has most of the ingredients for a competitive electricity and gas market, but it’s missing a vital piece – customers. With a population of only half a million, Tasmania is currently too small of a market for most major retailers to invest in. Additionally, while electricity prices are regulated, it’s doubtful that many mainland retailers will see much opportunity in Tasmania’s market. That said, we are now starting to see the benefits of some healthy competition, so if enough customers become proactive and switch around, it could encourage other retailers to give Tasmania more attention. We’ll have to wait and see on that one!

While Tasmanians are severely restricted in retailer choice, there are plenty of other ways to save on energy.